from an enterprise perspective, we may not need to deal with tokens/ethers. Can an enterprise use ethereum at the same time decide not to use tokens/ethers (for example not supplying gas for every transaction)? such financial arrangements could be made outside of the transactions by participating organizations.


Consortium networks can use Ethereum technology. The network design constraints are different and that means consortiums can apply different approaches to specific concerns:

Since members of a consortium network are known and admitted into the system by a governance process, they don't generally need to address large numbers of anonymous bad actors. A return to accountability negates the need for some of the processes one finds on public networks.

The public system relies on economic incentives to financially punish mischief by unidentifiable assailants. This is the core purpose of the ETH token. If a unit of account wasn't required to incentivize good actors it wouldn't exist at all.

As it happens, the public network boasts rather impressive replication and strong assurances that contracts will always run as coded. Strong assurance of the integrity of the system and the fact that it's accessible to everyone are two key properties that make codified tokens possible. It does not imply that tokens are the only valid use of a public system that provides exceptionally high assurances. It does, however, imply that it is not possible to summon thousands of participating computers to assist with a transaction without attaching a small fee for transaction processing. On public network, "who pays?" is an ever-present concern at a granular level. There is no possible way to make a state change free.

A network of vetted participants that achieves convincing assurance that Byzantine nodes will be ejected and does so without a financial incentive has no need for an incentive-based solution. The "coin" concept is absent in the design of systems like Quorum (Enterprise Ethereum) and competitors such as the Hyperledger projects. There's just no need for it.

Having said that, software patterns around "tokenized" assets and documents are often very applicable even a context where there is no cost to execute a transaction and no expectation that the "database" is compatible with exchanges or convertible to other currencies.

Hope it helps.


If you are talking about a private Ethereum blockchain, then yes, you can forget about gas usage (set its price to 0) if you want to. Also, nothing forces you to use tokens within the network - tokens are just smart contracts and if nobody writes token contracts on the network there will be no tokens.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.